Thailand’s Securities and Exchange Commission is considering allowing mutual and private funds to invest in crypto products to meet the increasing interest from institutional investors.
The financial regulator’s proposal on October 9 suggested that funds should have the opportunity to invest more in crypto exchange-traded funds (ETFs) traded and listed on US stock exchanges.
Under the proposal, securities firms and asset managers would be permitted to offer crypto-related products to large investors. SEC Deputy Secretary General Anek Yooyuen mentioned that “Investment tokens” would be listed with the same investment ratios as transferable securities like stocks and bonds due to their similar characteristics and risks.
The regulator plans to implement different rules for various types of digital assets, treating risky assets like Bitcoin (BTC) differently from stablecoins. Private investment funds would have a 15% allocation limit in crypto investments, while institutional and high net worth investors would not face any exposure limits.
The SEC is set to review the criteria for managing funds investing in crypto assets, covering areas such as asset custody, value calculation, information disclosure, and advertising. Additionally, the regulator intends to permit initial coin offering (ICO) portals for token fundraising or designing investment projects.
To strengthen market integrity, the SEC plans to increase fines for activities like naked short selling, inappropriate trading orders, and market manipulation. Earlier this year, the regulator blocked unlicensed crypto exchanges from operating in the country.
The SEC is also developing a Digital Asset Regulatory Sandbox for ten private companies to pilot projects exchanging crypto assets for local currencies. This initiative could pave the way for crypto payments in Thailand, a practice currently prohibited by the country’s central bank.
Despite the regulatory developments, retail crypto trading remains popular in Thailand, with the largest crypto exchange, Bitkub, boasting a daily volume of nearly $30 million, according to CoinGecko.
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